{"id":51668,"date":"2022-05-19T02:00:23","date_gmt":"2022-05-19T02:00:23","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2022\/05\/19\/navy-says-it-will-lose-millions-by-not-committing-to-10-destroyers-in-upcoming-contract\/"},"modified":"2026-08-07T23:47:50","modified_gmt":"2026-08-07T23:47:50","slug":"navy-says-it-will-lose-millions-by-not-committing-to-10-destroyers-in-upcoming-contract","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/naval\/2022\/05\/19\/navy-says-it-will-lose-millions-by-not-committing-to-10-destroyers-in-upcoming-contract\/","title":{"rendered":"Navy says it will lose millions by not committing to 10 destroyers in upcoming contract"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">WASHINGTON \u2014 The U.S. Navy doesn\u2019t want to promise to buy too many ships in the next five years, in case it can\u2019t follow through due to budget or supply chain constraints.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But its unwillingness to guarantee work to shipbuilders will cost the sea service millions of dollars in the long run, a top official told Defense News.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Navy needs more Flight III Arleigh Burke-class destroyers, as the cruisers begin to exit the fleet and the Flight I DDGs near the end of their planned service lives. A number of lawmakers have said they\u2019re open to funding three new destroyers a year compared to the expected two a year, something industry \u2014 the Ingalls Shipbuilding yard in Mississippi and the General Dynamics Bath Iron Works yard in Maine, plus their suppliers \u2014 would welcome.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But the Navy only has two a year in its near-term shipbuilding plans.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Moreover, it only plans to ask for nine guaranteed ships<b> <\/b>in its upcoming five-year procurement contract, which, if executed to that minimum level, would be a decrease in workload for the shipbuilders.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The legislative proposal the Navy will soon send Congress will ask for authority to buy nine ships, plus an option for a 10th ship to continue the two-a-year pace as well as additional options to buy a third ship each year if Congress appropriates additional funds, Jay Stefany, the principal civilian deputy to the assistant secretary of the Navy for research, development and acquisition, told House Armed Services seapower and projection forces subcommittee members in a May 18 hearing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This request, he said, gives flexibility to scale up to the three-a-year procurement rate industry and some lawmakers want. It also allows the Navy to stay at nine ships if funding levels are lower than expected, if inflation crowds out the shipbuilding budget, if labor and supply challenges drive up the cost of ships or another contingency arises.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But Stefany said this flexibility comes at a cost. The savings in multi-ship contracts come from guaranteeing work. In this case, Bath Iron Works and Ingalls Shipbuilding can ask their suppliers for quotes on material and systems based on buying nine ship sets. They\u2019d get a better price if they asked for a quote for 10 ship sets and an even better price if they asked for 15 ship sets upfront.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cA 10-ship multiyear will save us more than a nine-ship multiyear. That cost is not overly large, but that\u2019s a decision that the department\u2019s made of value versus flexibility,\u201d Stefany told the subcommittee.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">After the hearing, Stefany told Defense News his team was still working to compare the cost of a nine-ship versus a 10-ship contract. Generally, he said, \u201cit\u2019s in the millions, but it\u2019s not a huge number.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">He noted the option ship for each year would essentially cost the Navy full price, rather than the 7% to 8% savings that come with economic order quantity savings.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The option ships \u201cwould be priced higher because they\u2019re not guaranteed.\u201d<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"6632\" height=\"4421\" src=\"\/wp-content\/uploads\/2026\/08\/BIW-111721-6.jpeg.jpg\" alt=\"\" class=\"wp-image-113583\" srcset=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/BIW-111721-6.jpeg.jpg 6632w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/BIW-111721-6.jpeg.jpg?resize=300,200 300w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/BIW-111721-6.jpeg.jpg?resize=768,512 768w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/BIW-111721-6.jpeg.jpg?resize=1024,683 1024w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/BIW-111721-6.jpeg.jpg?resize=1536,1024 1536w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/BIW-111721-6.jpeg.jpg?resize=2048,1365 2048w\" sizes=\"auto, (max-width: 6632px) 100vw, 6632px\" \/><figcaption class=\"wp-element-caption\">The destroyer USS John Basilone pictured at the Bath Iron Works shipyard in Maine, 2021. (Bath Iron Works)<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Rep. Rob Wittman, the top Republican on the subcommittee, told Stefany during the hearing he doesn\u2019t think the flexibility is worth the cost.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cFewer ships, or being able to take out ships, is not the direction we should be going,\u201d he said. In his opening remarks, which he submitted in writing after the hearing, Wittman, of Virginia, said \u201cI reject the administration\u2019s anemic shipbuilding request and will seek to expand our shipbuilding plans required to meet our warfighting requirements by accelerating construction of our destroyers, frigates and auxiliary ships.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Rep. Jared Golden, a Democrat from Maine, criticized the Navy for \u201ctalking about a desire to see these two yards get to a place where they can do three ships per year,\u201d but not taking firm steps to help them achieve that goal, such as committing to work so the yards can hire and train a sufficiently large workforce.<\/p>\n\n\n\n<h1 class=\"wp-block-heading\">Broader shipbuilding instability<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">The Navy faces a similar situation with its guided-missile frigate program.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Stefany said in the hearing that Wisconsin-based Fincantieri Marinette Marine invested in increasing its capacity to build the Constellation-class frigate, but the Navy plans to buy them in a sawtooth pattern of one, then two, then one, then two each year in the near term.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Stefany called this the \u201cminimum sustaining rate\u201d to keep Fincantieri\u2019s production line moving.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Vice Adm. Scott Conn, the deputy chief of naval operations for warfighting requirements and capabilities, said at the hearing the Navy would buy more if it could afford it.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThat profile is affordability, plain and simple,\u201d he said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe initial \u2018one\u2019 is to de-risk the program: we need that ship on time and we don\u2019t want to over-pressurize\u201d the workforce as it\u2019s learning to build the frigate and wringing out design issues, Conn said. \u201cOnce the contractor demonstrates that they are on plan, with resources available we would go to two across the board, or perhaps more in the future.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Navy faces the same problem with its amphibious warships, where it plans to truncate the San Antonio-class amphibious transport dock program and buy America-class amphibious assault ships LHA-9 and LHA-10 more than a decade apart, despite a four- or five-year cadence being most cost-effective.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"8256\" height=\"5504\" src=\"\/wp-content\/uploads\/2026\/08\/32_coverjump_ingalls.jpg.jpg\" alt=\"\" class=\"wp-image-26209\" srcset=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/32_coverjump_ingalls.jpg.jpg 8256w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/32_coverjump_ingalls.jpg.jpg?resize=300,200 300w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/32_coverjump_ingalls.jpg.jpg?resize=768,512 768w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/32_coverjump_ingalls.jpg.jpg?resize=1024,683 1024w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/32_coverjump_ingalls.jpg.jpg?resize=1536,1024 1536w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/32_coverjump_ingalls.jpg.jpg?resize=2048,1365 2048w\" sizes=\"auto, (max-width: 8256px) 100vw, 8256px\" \/><figcaption class=\"wp-element-caption\">Ingalls Shipbuilding launched the San Antonio-class amphibious transport dock Richard M. McCool Jr. on Jan. 7, 2022. (Huntington Ingalls Industries)<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Stefany confirmed during the hearing the Navy would pay more for LHA-10 due to the elongated build cycle.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Rep. Elaine Luria, D-Va., criticized the approach, telling Navy officials they \u201csubmitted a request that you admit is more expensive in the long run and essentially guts the workforce\u201d at Ingalls Shipbuilding, the sole provider of amphibious ships.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">George Nungesser, Ingalls\u2019 vice president of program management, told reporters in a May 11 call the yard essentially views the LHA program as having a gap.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cGaps \u2014 they cause concerns. You don\u2019t know how to go plan for the future or how to hire, train or retain a skilled workforce,\u201d he said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWe\u2019ve experienced this type of gap\u201d when the Navy ended the Arleigh Burke production line in the 2000s but then later restarted it, leaving Ingalls with a five-year gap between ships. That meant essentially a new workforce constructing the DDGs, after much of the original skilled workforce moved on to other ship programs at Ingalls or other employers altogether.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWe know that impacts the supply base, things of that nature, and increases pricing, and so that\u2019s why we\u2019re trying to figure out how do we move to a four-year<b> <\/b>[gap between ships]\u201d despite what the Navy\u2019s long-range shipbuilding plan and five-year budget plan lays out.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The House Armed Services Committee will take up the annual defense authorization bill next month, which will shed more light on Congress\u2019 plans for both the destroyer multi-year contract and the rest of the shipbuilding portfolio.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The U.S. Navy doesn\u2019t want to over-commit to buying too many ships in the next five years, in case it can\u2019t follow through due to fiscal or supply chain issues. That will cost the service millions of dollars.<\/p>\n","protected":false},"author":7,"featured_media":26212,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":16,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":{"2":{"categories":["your-military","news","left-column","home"],"primary_category":"your-military"},"7":{"categories":["your-navy","news","newsletters","daily-news-roundup","left-column","home"],"primary_category":"your-navy"}}},"categories":[8,160,16,36],"tags":[],"coauthors":[3354],"class_list":["post-51668","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-congress","category-daily-news-roundup","category-naval","category-newsletters"],"acf":{"subheadline":"","legacy_arc_id":"E3V4KES4ORETNH2O5U7EKXECT4","arc_canonical_url":"\/naval\/2022\/05\/18\/navy-says-it-will-lose-millions-by-not-committing-to-10-destroyers-in-upcoming-contract\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented By:"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.0 (Yoast SEO v28.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Navy says it will lose millions by not committing to 10 destroyers in upcoming contract - Defense News<\/title>\n<meta name=\"description\" content=\"The U.S. Navy doesn\u2019t want to over-commit to buying too many ships in the next five years, in case it can\u2019t follow through due to fiscal or supply chain issues. That will cost the service millions of dollars.\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Navy says it will lose millions by not committing to 10 destroyers in upcoming contract\" \/>\n<meta property=\"og:description\" content=\"The U.S. Navy doesn\u2019t want to over-commit to buying too many ships in the next five years, in case it can\u2019t follow through due to fiscal or supply chain issues. That will cost the service millions of dollars.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/one.sightlinemg.com\/defensenews\/naval\/2022\/05\/19\/navy-says-it-will-lose-millions-by-not-committing-to-10-destroyers-in-upcoming-contract\/\" \/>\n<meta property=\"og:site_name\" content=\"Defense News\" \/>\n<meta property=\"article:published_time\" content=\"2022-05-19T02:00:23+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-08-07T23:47:50+00:00\" \/>\n<meta name=\"author\" content=\"Megan Eckstein\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Megan Eckstein\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\n\t    \"@context\": \"https:\\\/\\\/schema.org\",\n\t    \"@graph\": [\n\t        {\n\t            \"@type\": \"Article\",\n\t            \"@id\": \"https:\\\/\\\/one.sightlinemg.com\\\/defensenews\\\/naval\\\/2022\\\/05\\\/19\\\/navy-says-it-will-lose-millions-by-not-committing-to-10-destroyers-in-upcoming-contract\\\/#article\",\n\t            \"isPartOf\": {\n\t                \"@id\": \"https:\\\/\\\/one.sightlinemg.com\\\/defensenews\\\/naval\\\/2022\\\/05\\\/19\\\/navy-says-it-will-lose-millions-by-not-committing-to-10-destroyers-in-upcoming-contract\\\/\"\n\t            },\n\t            \"author\": {\n\t                \"name\": \"migration\",\n\t                \"@id\": \"https:\\\/\\\/one.sightlinemg.com\\\/defensenews\\\/#\\\/schema\\\/person\\\/cc76c831bb37a926738c8391fca7a3b1\"\n\t            },\n\t            \"headline\": \"Navy says it will lose millions by not committing to 10 destroyers in upcoming contract\",\n\t            \"datePublished\": \"2022-05-19T02:00:23+00:00\",\n\t            \"dateModified\": \"2026-08-07T23:47:50+00:00\",\n\t            \"mainEntityOfPage\": {\n\t                \"@id\": \"https:\\\/\\\/one.sightlinemg.com\\\/defensenews\\\/naval\\\/2022\\\/05\\\/19\\\/navy-says-it-will-lose-millions-by-not-committing-to-10-destroyers-in-upcoming-contract\\\/\"\n\t            },\n\t            \"wordCount\": 1171,\n\t            \"commentCount\": 0,\n\t            \"publisher\": {\n\t                \"@id\": \"https:\\\/\\\/one.sightlinemg.com\\\/defensenews\\\/#organization\"\n\t            },\n\t            \"image\": {\n\t                \"@id\": \"https:\\\/\\\/one.sightlinemg.com\\\/defensenews\\\/naval\\\/2022\\\/05\\\/19\\\/navy-says-it-will-lose-millions-by-not-committing-to-10-destroyers-in-upcoming-contract\\\/#primaryimage\"\n\t            },\n\t            \"thumbnailUrl\": \"https:\\\/\\\/one.sightlinemg.com\\\/wp-content\\\/uploads\\\/2026\\\/08\\\/198609781_4367731106605001_1356395630190890350_n.jpg.jpg\",\n\t            \"articleSection\": [\n\t                \"Congress\",\n\t                \"Daily News Roundup\",\n\t                \"Naval\",\n\t                \"Newsletters\"\n\t            ],\n\t            \"inLanguage\": \"en-US\",\n\t            \"potentialAction\": [\n\t                {\n\t                    \"@type\": \"CommentAction\",\n\t                    \"name\": \"Comment\",\n\t                    \"target\": [\n\t                        \"https:\\\/\\\/one.sightlinemg.com\\\/defensenews\\\/naval\\\/2022\\\/05\\\/19\\\/navy-says-it-will-lose-millions-by-not-committing-to-10-destroyers-in-upcoming-contract\\\/#respond\"\n\t                    ]\n\t                }\n\t            ]\n\t        },\n\t        {\n\t            \"@type\": \"WebPage\",\n\t            \"@id\": \"https:\\\/\\\/one.sightlinemg.com\\\/defensenews\\\/naval\\\/2022\\\/05\\\/19\\\/navy-says-it-will-lose-millions-by-not-committing-to-10-destroyers-in-upcoming-contract\\\/\",\n\t            \"url\": \"https:\\\/\\\/one.sightlinemg.com\\\/defensenews\\\/naval\\\/2022\\\/05\\\/19\\\/navy-says-it-will-lose-millions-by-not-committing-to-10-destroyers-in-upcoming-contract\\\/\",\n\t            \"name\": \"Navy says it will lose millions by not committing to 10 destroyers in upcoming contract - 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